Friday November 28, 2014 Search
Weather | Athens
14o C
8o C
News
Business
Comment
Life
Sports
Community
Survival Guide
Greek Edition
Minister says new foreclosure rules will protect nine out of 10 owners

A new framework that aims to prevent nine out of 10 homeowners from losing their properties if they do not keep up mortgage repayments was unveiled on Wednesday by Development Minister Costis Hatzidakis, who is also hoping that he has done enough to win the support of coalition MPs when the legislation is voted on later this week.

The current moratorium on foreclosures was due to expire at the end of the year. The troika had asked for at least a partial lifting next year but was not able to agree on a formula with the Greek government before officials left Athens this week.

As a result, Greece has decided to legislate without its lenders’ approval, creating new restrictions on foreclosures that are not as strict as the existing ban but which should protect the vast majority of homeowners.

“We are trying to protect low- and middle- income groups by producing a socially just solution that will not protect the wealthy, big incomes or fleecers,” said Hatzidakis.

The criteria announced by Hatzidakis mean that homes with a taxable value of less than 200,000 euros will still be protected if owners do not keep up mortgage repayments but only as long as they fulfill certain other criteria as well.

Foreclosures will not be allowed if: The taxable value of the property is under 200,000 euros; gross household income (not including social security contributions, income tax and solidarity tax) is no more than 35,000 euros; and the owner’s total assets are under 270,000 euros.

The criteria will be relaxed a little for families with three or more children.

The ministry also proposes that those with a household income of less than 15,000 euros per year should pay a monthly mortgage payment of 10 percent of their net monthly income.

Those earning between 15,000 and 35,000 euros per year should pay monthly mortgage payments that amount to 10 percent of their first 15,000 euros of income and 20 percent of anything they earn above that.

The unemployed will be allowed to forgo monthly payments until they have an income.

The new framework was unveiled after long discussions within the government. While it appears that fears within PASOK have been largely allayed, there are still some New Democracy MPs who are skeptical about the new plans and want the existing ban to be extended. The three lawmakers who have publicly voiced their concerns are Nikitas Kaklamanis, Iordanis Tzamtzis and Sofia Voultepsi. The latter said that this was a purely political, rather than technical, matter and that the government would suffer a backlash if people started to lose their homes.

Hatzidakis is due to meet again with conservative lawmakers on Thursday ahead of a vote on the new legislation in Parliament on Saturday.

Before that, there is the vote on the new property tax on Friday, with the government sweating over whether two MPs, Vyron Polydoras and Nikos Sifounakis, will back the legislation after expressing doubts.

ekathimerini.com , Wednesday December 18, 2013 (21:33)  
Seven PASOK MPs voice support for party leader
New law could transfer control of unused buildings
Greece set to accept continued role for IMF
Independent Greeks MP claims bribe attempt
PPC profits power up in Jan-Sept
Public Power Corporation’s impressive profits in the first nine months of 2014 create significant scope for a reduction in electricity rates and are the result of a cut in spending on fuel a...
Papastratos banking on exports
Leading tobacco firm Papastratos on Wednesday announced that a planned investment of 25 million euros in the transformation of the company’s factory into an exporting center is in the works....
Inside Business
SOCCER
PAOK is one win from Europa League´s last 32
A late brace by Stefanos Athanasiadis gifted PAOK a precious win at Dynamo Minsk on Thursday, meaning that the Thessaloniki team is one win away from graduating from the group stage of the E...
BASKETBALL
First defeat for Olympiakos in Euroleague
Olympiakos suffered its first Euroleague loss of the season going down 89-70 at Laboral Kutxa on Thursday, although the Greek team remains the favorite to clinch the top spot in its pool. Th...
Inside Sports
COMMENTARY
The presidential election paradox
A few days ago, speaking with a visiting colleague who neither works in Europe nor covers events here, I suddenly felt how much we Greeks take for granted some things that should have worrie...
COMMENTARY
Scraping together the 180 MPs will not be enough
Even if the coalition government was to scrape together the 180-MP majority it needs to elect a new President in the 300-seat House, skeptics say, what will change really? There is one evide...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
 RECENT NEWS
1. PAOK is one win from Europa League´s last 32
2. First defeat for Olympiakos in Euroleague
3. PPC profits power up in Jan-Sept
4. Papastratos banking on exports
5. Saudi group Olayan to enter Costa Navarino
6. Bank-financed property transactions rise a notch
more news
Today
This Week
1. Greece paralyzed by major strike, flights cancelled
2. Greek diplomat dies in fall under Thai train
3. Greece scrambles to find food, shelter for 700 migrants on crippled ship
4. Chief suspect in Piraeus bar shooting arrested
5. Scraping together the 180 MPs will not be enough
6. Troika talks to continue after failure to wrap up negotiations in Paris
Today
This Week
1. Give Greece a chance
2. Scientists expand excavation of ancient Amphipolis
3. Extremism from a bygone era
4. Greece paralyzed by major strike, flights cancelled
5. Piraeus nightclub shooting leaves 3 seriously injured
6. Cosco’s Greek unit adds multinational rail-freight client
   Find us ...
  ... on
Twitter
     ... on Facebook   
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2014, H KAΘHMEPINH All Rights Reserved.